Read the screenplay: FANNIEGATE — $7 trillion. 17 years. The biggest fraud in American capital markets.
#49
#49

Bad Blood

by John Carreyrou2018

Pages

352

Goodreads Rating

4.40/5

Copies Sold

3M+

First Published

2018

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Why It Ranks #49

The most important cautionary tale in modern business. Carreyrou's reporting took down a $9 billion fraud and produced a book that every investor, board member, and entrepreneur should read as a reminder that due diligence is not optional.

The Review

Bad Blood is the story of Theranos, the blood-testing startup that raised $700 million and achieved a $9 billion valuation on the promise of technology that did not work. Elizabeth Holmes convinced some of the most powerful people in America — Henry Kissinger, George Shultz, Rupert Murdoch, the Walton family — that her company could run hundreds of diagnostic tests from a single drop of blood. The technology was a fraud, and patients received inaccurate results that endangered their lives.

John Carreyrou, the Wall Street Journal reporter who broke the story, produced the definitive account of the most spectacular corporate fraud since Enron. Bad Blood is a cautionary tale about what happens when charisma replaces competence, when 'fake it till you make it' culture meets healthcare, and when nobody on the board has the technical expertise to ask the right questions. It is also a masterclass in investigative journalism.

Key Takeaways

  • 1Charisma and a compelling story can substitute for working technology for a disturbingly long time
  • 2Boards without domain expertise cannot provide meaningful oversight
  • 3A culture of secrecy and intimidation is always a red flag — transparency is a feature, not a vulnerability
  • 4The 'fake it till you make it' ethos has limits, especially when lives are at stake

Fun Facts

  • Theranos's board included Henry Kissinger, George Shultz, Jim Mattis, and two former Secretaries of State — but zero scientists
  • Holmes was convicted of four counts of fraud in January 2022
  • Carreyrou was tipped off by a pathologist who suspected the test results were unreliable
  • Holmes reportedly modeled her persona on Steve Jobs — black turtleneck, intense eye contact, deep voice

Book Details

Bad Blood by John Carreyrou

Pages

352

Goodreads Rating

4.40/5

Copies Sold

3M+

First Published

2018

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